Trump Threatens to Cut Trade With Spain Over Iran Strike Dispute

U.S. President Donald Trump has threatened to suspend all trade with Spain after Madrid declined to allow American forces to use its military bases for potential strikes on Iran.

The sharp warning marks a new escalation in tensions between Washington and Madrid, as disagreements deepen over military cooperation and defense commitments.

Speaking during a meeting at the White House with German Chancellor Friedrich Merz, Trump criticized Spain’s refusal and accused the country of failing to meet its defense obligations under NATO.

“Spain has been terrible,” Trump told reporters. “So we’re going to cut off all trade with Spain. We don’t want anything to do with Spain.”

He added that he had instructed Treasury Secretary Scott Bessent to begin steps toward suspending economic engagements with Madrid, citing presidential authority to impose trade restrictions, including embargoes.

Spain Defends Its Position

Spain’s Prime Minister Pedro Sanchez defended his government’s stance, stressing that U.S. forces can only operate from Spanish bases in ways that comply with the United Nations Charter and international law.

Madrid has maintained that any military action must align with multilateral agreements and legal frameworks, signaling reluctance to support unilateral strikes.

Strain on Transatlantic Ties

Trump also took aim at United Kingdom, suggesting that cooperation from London has been limited and that the U.S.-UK relationship “isn’t what it used to be.”

He further criticized Spain’s defense spending, claiming it is the only NATO member not meeting the alliance’s proposed 5% of GDP defense spending benchmark.

However, questions remain over the extent of presidential authority to unilaterally terminate trade with Spain. The Supreme Court of the United States previously invalidated Trump’s attempt to use emergency powers to impose sweeping tariffs, raising doubts about the legal pathway for a full trade cutoff.

Despite the legal uncertainty, Trump insisted he could halt business ties with Spain “tomorrow or today,” underscoring his belief in broad executive powers.

The dispute comes amid rising geopolitical tensions in the Middle East and highlights growing friction within Western alliances over military strategy and international law.